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$61M USDT Seized by US Authorities in Major Crypto Romance Scam Crackdown

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • US agents seized over $61M in Tether linked to a large-scale crypto pig butchering romance scam.
  • Scammers built fake romantic relationships to direct victims toward fraudulent crypto trading platforms.
  • HSI agents traced stolen USDT through multiple wallets before recovering funds still held in them.
  • Tether cooperated with federal authorities, assisting in the transfer of the seized USDT assets.

US agents seize $61M USDT in a major federal operation targeting cryptocurrency romance fraud. The U.S. Attorney’s Office for the Eastern District of North Carolina confirmed the recovery of over $61 million in Tether.

Homeland Security Investigations traced the funds to wallets connected to a large-scale pig butchering scheme. The case began after a fraud victim filed a report through the HSI Tip Line in Raleigh, North Carolina.

Romance Tactics Used to Lure Crypto Victims

Scammers behind the operation first approached victims under the guise of romantic interest. They built trust over time before introducing the topic of cryptocurrency investment opportunities. Once victims felt secure in the relationship, the fraud began to take shape.

The criminals then claimed to have special techniques for generating high returns through crypto trading. They directed victims to fake platforms that closely resembled legitimate cryptocurrency exchanges. Those platforms were designed to look credible in both name and appearance.

Fabricated investment dashboards showed unusually high portfolio gains to keep victims engaged. The false returns were intended to convince victims to deposit more and more money. Nothing shown on those platforms reflected any real trading activity.

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When victims attempted to withdraw funds, they were blocked at every turn. Scammers cited reasons such as unpaid “taxes” or “fees” as conditions for releasing money. Those demands were simply further attempts to drain victims of additional funds.

How HSI Tracked and Seized the USDT

After receiving the tip, HSI agents and analysts in Raleigh launched a blockchain tracing operation. They followed the stolen funds as they moved through a series of cryptocurrency wallets.

The movement of funds was a deliberate effort to obscure the origin and ownership of the money.

Despite the layering tactics used, investigators successfully traced the path of the funds. Several wallets at the end of that chain still held large amounts of victim money. Those wallets became the target of federal seizure and forfeiture action.

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HSI Charlotte Acting Special Agent in Charge Kyle D. Burns addressed the nature of the threat:

“HSI special agents work diligently to trace the illicit proceeds of crime across the globe to disrupt and dismantle the transnational criminal organizations that seek to defraud hardworking Americans.”

Tether played a cooperative role in the final stage of the recovery process. The company assisted federal authorities in transferring the seized USDT assets. The Department of Justice formally acknowledged Tether’s support in completing the operation.

U.S. Attorney Ellis Boyle reinforced the message behind the seizure:

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“Our asset forfeiture team worked along with HSI to take the profit out of crime.”

The case proves that crypto transactions, while complex, leave traceable trails. Federal coordination with stablecoin issuers is becoming a sharper tool against large-scale fraud.

 

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Crypto World

Tokenized US Treasury Market Surges by $1B Since Beginning of Year

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US Government, United States, Bonds, RWA, RWA Tokenization

The tokenized US Treasury market has surged by over $1 billion since the beginning of 2026, despite macroeconomic uncertainty and concerns over the US government’s growing national debt.

Tokenized US Treasurys are government debt instruments that are a form of real-world assets (RWAs) represented onchain by a token.

The market capitalization of tokenized Treasurys climbed to more than $10.8 billion at the time of writing from $8.9 billion on Jan. 1, according to data from RWA.xyz.

US Government, United States, Bonds, RWA, RWA Tokenization
The tokenized US Treasury market has grown to over $10.8 billion. Source: RWA.xyz.

The tokenized US Treasury market has surged 50x since 2024, according to data from Token Terminal, aided by the March 2024 debut of asset manager BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which now has a market cap of more than $1.2 billion.

Tokenized US Treasurys continued to surge despite a broad crypto market downturn that began in October 2025, rising US government debt levels and investor uncertainty about the macroeconomic outlook in 2026.

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US Government, United States, Bonds, RWA, RWA Tokenization
The World Uncertainty Index, an investor sentiment tracker, spiked to all-time highs in 2025. Source: FRED, Federal Reserve Bank of St. Louis

Related: Tokenized RWAs climb 13.5% despite $1T crypto market drawdown

The Depository Trust and Clearing Corporation to launch US Treasury tokenization service

The Depository Trust and Clearing Corporation (DTCC), which provides clearing and settlement services for global financial markets, announced plans in December 2025 to launch an asset tokenization service, beginning with US Treasurys.

DTCC will eventually expand the service to include a “broad spectrum” of assets, according CEO Frank La Salla. 

“Following the tokenization of US Treasurys on the Canton network, DTCC anticipates that exchange-traded funds (ETFs) and equities will come shortly thereafter,” La Salla said.

The DTCC is the largest clearinghouse in the world and settled $3.7 quadrillion in transaction volume in 2024, according to the company. 

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